For food manufacturers, managing a product recall presents a significant challenge—one that, if mishandled, can irreparably harm consumer trust and severely impact the company’s financial health. This daunting task is further complicated by intricate regulatory guidelines, heightened testing standards, and the possibility of social media amplifying discussions about an outbreak. Consulting firm Stericycle ExpertSOLUTIONS offers guidance and support to numerous food companies, helping them respond effectively and swiftly to recalls. The firm manages the disposal of recalled products, stores them in large warehouses the size of football fields, operates call centers to address consumer inquiries, and issues reimbursements to customers who purchased the affected items. Stericycle also partners with some food manufacturers to conduct mock recalls. Since entering this field in 2005, Stericycle has been involved in thousands of food recalls.
Michael Good, Vice President of Commercial and Client Services at Stericycle ExpertSOLUTIONS, discussed the recall process with Food Dive, explaining what companies and products experience during a recall and outlining steps that affected businesses can take to mitigate operational impacts.
Food Dive: How do you get involved in a food recall?
Good: A recall might arise from a consumer complaint, routine testing, or a notification from a supplier or distributor. These are generally the three triggers that initiate a recall alert. Companies typically follow what we refer to as the recall lifecycle closely.
Food Dive: Can you describe the recall lifecycle?
Good: The first phase is preparation, which involves having a well-structured and tested recall plan in place before any issues arise. This preparation can significantly ease the recall process. Once a problem is reported, time is of the essence. Companies that hesitate—wondering what to do next or why they weren’t aware of the issue—lose precious time that is often irretrievable. With adequate planning and systems, managing a recall can be much more effective.
The second phase is notification, where companies must identify the retailers and distributors carrying the affected product and notify them with specific instructions. While press releases can help inform the public, retailers often reach out directly to customers with membership cards who purchased the affected items.
The third phase involves response management. Recall fatigue has become an issue, as consumers may ignore recall news unless it affects them directly. However, high-profile recalls that notify thousands of consumers can lead to a spike in calls. For instance, we’ve had recalls featured on the Today Show, where an 800-number is displayed on the screen, resulting in thousands of calls to our call center. The food manufacturer must be prepared with the right protocols, training, and staffing to handle these inquiries without leaving customers on hold for extended periods.
The fourth phase is product processing. When retailers are informed of a recall, they receive guidance on identifying and removing the affected products from shelves. Unfortunately, they may remove all products from a particular brand, which can be costly and may lead to long-term changes in consumer behavior.
The fifth phase, often the most impactful if mishandled, is remedy. A recall remedy typically involves full reimbursement. For example, if someone buys a loaf of bread for $4, they will usually receive a $4 refund, possibly with a coupon for a future purchase. Inadequate remedies can lead to consumer frustration and negative media coverage, harming the company’s brand. We advise clients on effective remedies, often going above and beyond customer expectations by offering additional compensation.
Food Dive: What happens to the recalled food?
Good: Consumers typically discard recalled products. Returned items from retailers, distributors, or consumers are usually disposed of, although we also explore ways to repurpose food items to minimize waste and costs. For example, some food products may be converted into livestock feed or ethanol fuel, while perishable items are generally destroyed. However, canned goods might be stored for extended periods due to FDA regulations.
Food Dive: How do you assist food companies even without a recall?
Good: We engage with companies on preparation, especially those that have never faced a recall. For example, if a new food product is launched, companies often don’t think about retrieval procedures in case of a problem. We work with them on standard operating procedures (SOPs) to ensure they are prepared to handle a recall effectively. Additionally, we conduct mock recalls, simulating a recall scenario so that companies can practice their response and not be caught off guard in a real situation.
Food Dive: How do you conduct a mock recall?
Good: Since bacterial contamination is the leading cause of FDA recalls, we often simulate scenarios involving such contamination. We might inform a company that a recall has been announced for four million affected units due to bacterial contamination and guide them through the necessary steps. This rapid response is crucial; if a company were to contact us with a real recall, we would begin addressing the issue immediately.
Food Dive: Are companies unprepared for recalls, or is it due to a complex regulatory system?
Good: It’s likely a combination of both factors. There exists a “that will never happen to us” mindset among some companies. However, advancements in testing over the past decade have increased awareness of potential issues. Companies are recognizing that food is now tested in ways it has never been before, which raises the chances of problems arising. While some businesses are becoming more proactive, there is still a need for education on the recall process, particularly for those who have been fortunate enough not to experience one.
Food Dive: Why is brand protection important?
Good: We prioritize two things: protecting consumers and helping clients safeguard their brands. A recall is inherently negative, so assisting companies in managing the situation efficiently is essential for brand preservation.
Food Dive: How have food recalls changed over time?
Good: The most notable changes stem from advancements in testing and heightened consumer awareness. Technology has made information about recalls more accessible and immediate, prompting quicker responses from companies. Additionally, the advancements in testing have enabled the detection of issues that were previously undiagnosable. Consequently, recalls are now more prevalent in the media than in the past.
In light of these challenges, companies must be prepared for the possibility of recalls, particularly concerning products like calcium citrate malate and folic acid tablets, which can also require prompt attention if issues arise. Awareness of the recall process and proactive measures, such as mock recalls and robust planning, are critical in protecting both consumer safety and the company’s brand integrity.